In its response to the US tariffs on steel and aluminium, the EU is aiming to be ‘smart’ and hit US Republican-leaning states.
The EU made good on its threat to retaliate when retaliating to the US’ introduction of 25% tariffs on aluminium and steel imports by imposing tariffs that could affect up to €26 billion worth of US products, but it also tried to tailor them to hit Trump in his heartland.
At the heart of EU’s retaliation measures are products from the American states that elected Donald Trump: soja bean from Louisiana – the state of the speaker of the US House of Representatives Mike Johnson – beef and poultry from Nebraska and Arkansas. EU tariffs on wood will also impact Georgia and Virginia.
“In our response we try to be smart,” said a senior EU official, adding: “That means we have a list of products that have high iconic value, high symbolical value, that do not cost us much.”
In the list of countermeasures presented on Wednesday, the EU plans also to hit industrial products such as steel and aluminium products, textiles, leather goods, home appliances, house tools, plastics and wood products.
The countermeasures will come into force in mid-April after a consultation of EU industries and EU member states. In trade matters, Commission decisions are binding on the 27 member states unless a qualified majority object.
Wednesday’s list of products comes in addition to the products targeted in 2018 during the trade war launched by the first Trump administration. These measures were suspended after a truce reached under the Biden administration, but will now automatically re-apply as of 1 April to imports of American products such as Harley Davidson motorbikes and Bourbon whiskey.
In 2018 the Trump administration imposed 25% tariffs on steel and 10% on aluminium. This time both products are hit by 25% custom duties. The list of European products targeted is even broader than during the first trade war, since steel and aluminium derivatives are also targeted.
There is no exception either for specific categories of steel or aluminium. In 2018, US companies were able to seek certain exemptions. But this time that is not the case. The EU official predicted that “critical supply chains” will be affected in the US.
“We don’t think the US tariffs are very smart,” he said adding: “It doesn’t take into account what the US economy needs to produce goods for example cars that rely on specific steel products.”
The US tariffs which came into force last night will affect all imports of steel and aluminium into the US, not just those from Europe. While the EU has not coordinated its response with allies such as Canada and the UK, officials said that discussions are ongoing behind the scenes.
But Europe will also now brace for imports from third countries diverted from the US. The EU already faces oversupply of steel, particularly from China, for which safeguard measures will continue to run until June 2026. The Commission is considering new measures to cover any new surplus.
